Location: Waco, TX | Metro: Waco, TX HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $900 | $113,891 | 0.79% | D |
| 2BR | $1,120 | $127,867 | 0.88% | C |
| 3BR | $1,440 | $217,746 | 0.66% | D |
| 4BR | $1,490 | $313,355 | 0.48% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 76705, Lacy-Lakeview, TX, in fiscal year 2024 is set at $1060. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the actual rent you will receive; it's the payment standard used by the Housing Choice Voucher Program to determine the subsidy level.
In comparison, the local Zillow Observed Rental Index (ZORI) for ZIP 76705 stands at $1,232. This means that the typical market rent is higher than the Section 8 payment standard. However, the 37.2% renter share indicates that there is a significant demand for affordable housing in this area. With nearly 4 out of every 10 residents paying rent, the potential tenant pool for your Section 8 property is substantial.
To put this into perspective, the median home value in ZIP 76705 is around $210,247. This suggests that acquiring a property for Section 8 use could be relatively costly compared to the rental income you would receive through the program. The difference between the ZORI ($1,232) and the FMR ($1060) means that you might need to adjust your expectations on rental income if you decide to participate in the Section 8 program.
Before proceeding, it is crucial to verify that your property meets all the necessary requirements for the Section 8 program. This includes ensuring that your rental unit passes a thorough inspection for health and safety standards. The inspection will cover areas such as electrical systems, plumbing, heating, and overall structural integrity, among other criteria.
If your property is compliant and you are willing to accept the lower rent compared to market rates, participating in the Section 8 program can provide a steady stream of income and help ensure that your property remains occupied. Given the high renter share and the demand for affordable housing, your chances of finding a qualified tenant are good.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.